Datadog (DDOG) · Software
Datadog Q2 2026 earnings: summary, key numbers & outlook
Results filed 6 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Datadog's second quarter revenue grew 36% year-over-year to $1.12 billion, with GAAP net income per diluted share of $0.12, non-GAAP net income per diluted share of $0.65, operating cash flow of $316 million and free cash flow of $279 million.
Datadog's second-quarter revenue grew 36% from a year ago to $1.12 billion. It was barely profitable under GAAP, with operating income of $5 million. Excluding items such as stock-based compensation, operating income was $257 million, a 23% margin. The company generated $316 million of operating cash flow and $279 million of free cash flow. Customers with at least $100,000 in annual recurring revenue (ARR) rose to about 4,720 from about 3,850 a year ago.
For the third quarter, Datadog expects revenue of $1.135 billion to $1.145 billion. For the full year, it expects $4.45 billion to $4.47 billion. Non-GAAP operating income is guided to $260 million to $270 million for the third quarter. The main tension is that GAAP profit stays thin because of heavy stock-based compensation, while the company invests in AI products and acquisitions. Non-GAAP gross margin slipped to 80% from 81% a year ago.
Key numbers
- Revenue · GAAP
- $1.12 billion
- GAAP net income · GAAP
- $44.6M
- GAAP diluted EPS · GAAP
- $0.12
- Non-GAAP diluted EPS · non-GAAP
- $0.65
- Non-GAAP gross margin · non-GAAP
- 80%
- GAAP operating income · GAAP
- $5 million
- Non-GAAP operating income · non-GAAP
- $257 million
- GAAP operating margin · GAAP
- 0%
an increase of 36% year-over-year
up from $2,647 a year ago
up from $0.01 a year ago
up from $0.46 a year ago
down from 81% a year ago
compared with an operating loss of $(35,500) thousand a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Customers with ARR of $100,000 or more | about 4,720 | an increase of 23% from about 3,850 as of June 30, 2025 |
Where each number comes from
- Revenue: “Revenue was $1.12 billion, an increase of 36% year-over-year.”
- GAAP net income: “Provision for income taxes | 7,175 | 3,441 | 13,531 | 10,595 Net income | $44,558 | $2,647 | $97,132 | $27,289”
- GAAP diluted EPS: “GAAP net income per diluted share was $0.12; non-GAAP net income per diluted share was $0.65.”
- Non-GAAP diluted EPS: “GAAP net income per diluted share was $0.12; non-GAAP net income per diluted share was $0.65.”
- Non-GAAP gross margin: “GAAP gross margin | 79% | 80% | 79% | 80% Non-GAAP gross margin | 80% | 81% | 80% | 81%”
- GAAP operating income: “GAAP operating income was $5 million; GAAP operating margin was 0%.”
- Non-GAAP operating income: “Non-GAAP operating income was $257 million; non-GAAP operating margin was 23%.”
- GAAP operating margin: “GAAP operating income was $5 million; GAAP operating margin was 0%.”
- Customers with ARR of $100,000 or more: “we had about 4,720 customers with ARR of $100,000 or more, an increase of 23% from about 3,850 as of June 30, 2025.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $1.1B | +35.6% | +11.4% |
| Operating income | $5.5M | — | −25.5% |
| Net income | $44.6M | +1583.3% | −15.2% |
| Diluted EPS | $0.12 | +1100.0% | −20.0% |
| Free cash flow | $306.0M | +65.5% | −5.3% |
| Gross margin | 78.6% | −1.3 pts | −0.6 pts |
| Operating margin | 0.5% | +4.8 pts | −0.2 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | third quarter of 2026 | between $1.135 billion and $1.145 billion |
| Non-GAAP operating income | third quarter of 2026 | between $260 million and $270 million |
| Non-GAAP net income per share | third quarter of 2026 | between $0.63 and $0.65 |
| Revenue | full year 2026 | between $4.45 billion and $4.47 billion |
| Non-GAAP operating income | full year 2026 | between $1.01 billion and $1.03 billion |
| Non-GAAP net income per share | full year 2026 | between $2.50 and $2.54 |
Key takeaways
Revenue growth stayed strong at 36%
Revenue was $1.12 billion, an increase of 36% year-over-year. Six-month revenue was $2,127,880 thousand versus $1,588,313 thousand a year earlier.
GAAP profit remains thin despite scale
GAAP operating income was $5 million and GAAP operating margin was 0%. Stock-based compensation of $220,251 thousand is the main gap to non-GAAP operating income of $257 million.
Cash generation improved sharply
Operating cash flow was $316 million and free cash flow was $279 million. A year ago free cash flow was $165,353 thousand.
Larger customers continue to expand
Datadog had about 4,720 customers with ARR of $100,000 or more, up 23% from about 3,850 a year ago.
Full-year outlook is $4.45–$4.47 billion
Datadog guides full-year revenue between $4.45 billion and $4.47 billion and third-quarter revenue between $1.135 billion and $1.145 billion. Third-quarter non-GAAP net income per share is guided at $0.63 to $0.65.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $737.7M * |
| Q1 2025 | $761.6M |
| Q2 2025 | $826.8M |
| Q3 2025 | $885.7M |
| Q4 2025 | $953.2M * |
| Q1 2026 | $1.0B |
| Q2 2026 | $1.1B |
| Q3 2026 | $1.2B |
Data
| Q1 2025 | $0.07 |
| Q2 2025 | $0.01 |
| Q3 2025 | $0.10 |
| Q1 2026 | $0.15 |
| Q2 2026 | $0.12 |
| Q3 2026 | $0.32 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 1.3% |
| Q1 2025 | -1.6% |
| Q2 2025 | -4.3% |
| Q3 2025 | -0.7% |
| Q4 2025 | 1.0% |
| Q1 2026 | 0.7% |
| Q2 2026 | 0.5% |
| Q3 2026 | 6.2% |
Data
| Q4 2024 | $257.5M |
| Q1 2025 | $262.8M |
| Q2 2025 | $184.9M |
| Q3 2025 | $234.7M |
| Q4 2025 | $318.2M |
| Q1 2026 | $323.3M |
| Q2 2026 | $306.0M |
| Q3 2026 | $279.1M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How much revenue did Datadog report for Q2 2026?
Datadog reported revenue of $1.12 billion, an increase of 36% year-over-year. The exact GAAP figure was $1,121,454 thousand versus $826,760 thousand a year earlier.
Is Datadog profitable?
Under GAAP, Datadog earned net income of $44,558 thousand, or $0.12 per diluted share, with operating income of just $5 million. Non-GAAP operating income was $257 million and non-GAAP EPS was $0.65.
How much cash did Datadog generate?
Operating cash flow was $316 million and free cash flow was $279 million. Cash, cash equivalents and marketable securities totaled $5.0 billion at June 30, 2026.
What is Datadog's guidance for Q3 and the full year 2026?
For Q3, Datadog expects revenue of $1.135 billion to $1.145 billion and non-GAAP EPS of $0.63 to $0.65. For the full year, it expects revenue of $4.45 billion to $4.47 billion and non-GAAP EPS of $2.50 to $2.54.
What product and business news came with the quarter?
Datadog launched Bits Code, Bits Chat and Bits Agent Builder for general availability, and acquired Adaptive ML. It was also named a Leader in the Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year.
Documents
SEC filing